The Week Ahead (5 – 9 June): All Eyes will be on UK Election

5 Jun 2017 02:13 AM

US employment data dominated the events last week, but disappointed markets. This week, the markets are heading towards the UK, where the general elections will be held next Thursday and the results of those elections will play a role in the process of Brexit negotiations with the EU.

British general elections and service sector data

British voters will vote on Thursday to elect 650 members of the low house from which a government will be formed; that will begin negotiations on Brexit. There were some voices calling for a postponement of the elections in the wake of the London terrorist attack, which killed seven and left 48 injured.
The Conservatives remained ahead of recent polls, despite fears that the conservative leader, Teresa May, would not get the majority.
Also, Services PMI data will be released, and is expected to record 55.1 points in May, after the sector grew by 55.8 points in April.

Australian interest rate decision and growth data

The RBA's monetary policy committee is due to meet on Tuesday, with most expectations that the bank will keep interest rates unchanged at current levels of 1.50% for the 10th consecutive meeting, as well as maintain its current neutral policy.
Growth data will also be released the following day, with GDP expected to grow by 0.3% in the first quarter following a positive quarter-quarter reading of 1.1%.
Australia's trade balance data will also be released. The trade surplus is expected to shrink to 1.99$ billion in May, following last month's surplus of 3.11$ billion.

China's trade balance figures

China's trade balance figures are also due to be released. The trade surplus is expected to widen by 336 billion Yuan in May, after a surplus of 262 billion Yuan in April. Exports and imports are also expected to continue growing after rising during the past month.



European Interest Rate Decision

The ECB is expected to keep interest rates unchanged and keep its policy unchanged, but all eyes will be on ECB President Mario Draghi's speech at the press conference, especially as the euro zone's economic recovery continues and political risks fade, Will this play a role in giving indications about the beginning of the transformation of the ECB monetary policy.

Canadian Employment Data

Canada's labor market data will be released at the end of the week. It is expected that economy to add 11.5K jobs in May, after 3.2K jobs added in April, and unemployment will rise to 6.6% after stabilizing at 6.5% in April.

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